Income
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Articles in Income
United Nations Employee Tax Return
Unlike most United Nations member countries, the United States does not exempt from tax the wages paid by the UN to US citizens employed in the US.
Error message for nominee dividends and decedent dividends
Sum of Nominee Dividends and Decedent Dividends Must be Less than or Equal to Total Dividends.
How to Enter Form 1099 Composite
A 1099 Composite is a consolidated statement listing the 1099s that have been issued by a financial institution to the taxpayer.
Canadian Retirement Income
Canadian retirement benefits are similar to the US in that there are nationally-sponsored retirement plans and also individually elected plans and employer-sponsored plans.
Entering Canadian Income Form T4 & T4A-NR
All US citizens, regardless of residential status, are required to submit a tax return to the IRS.
Entering Prisoner Income
Prisoners are required to file a federal income tax return according to the same criteria as those not in prison.
Form 1099-NEC, Nonemployee Compensation
Form 1099-NEC is used to report nonemployee compensation.
Form 4562 - Depreciation and Amortization
Form 4562, Depreciation and Amortization (Including Information on Listed Property), is generally completed in Tax Processors Plus Desktop via the Depreciation Module.
Form 8997 - Statement of Qualified Opportunity Fund Investments
The Tax Cuts and Jobs Act of 2017 provided for certain economically distressed census tracts to be designated Qualified Opportunity Zones (QOZ) for the purpose of attracting investment.
Form 6781 - Contracts and Straddles
Gain from the sale of a hedge is treated as ordinary income.
Form W-2 - Other Compensation Menu
For most returns, Form 1040 Line 1a, "Wages, Salaries, Tips, etc." consists of income reported on Form W-2.
Social Security Lump-Sum Election
If the taxpayer does not have any taxable social security benefits in the current year, the lump-sum election won't change the return and doesn't need to be completed.
Form 1099-R - Other Data Menu
IRA Qualified Charitable Distributions - If the taxpayer made a qualified charitable distribution from their IRA, select YES .
Form 8582 - Passive Activity Loss Limitations
Form 8582, Passive Activity Loss Limitations is used to calculate the amount of any passive activity loss that a taxpayer can take in a given year.
Form 1040 - Schedule K-1 Input Instructions
Schedule K-1 is used to distribute the net profit/loss to the shareholders of an S corporation or to the partners in a partnership.
Form 6252 - Installment Sale Income
An installment sale is a sale of property in which the taxpayer receives at least one payment for the sale after the tax year of the sale.
Schedule D (Form 1040)
When a taxpayer sells a capital asset , i.e., property owned and used for personal or investment purposes, the sale will result in either a capital gain or a capital loss and is generally reported on Schedule D (Form 1040).
Form 1099-G, Box 2 - State and Local Refunds
A refund of state or local income tax paid may in total or in part be considered income in the year that it is received, provided the taxpayer claimed the taxes paid as an itemized deduction on the prior year tax return that is referenced in box 3.
Interest or Dividends (Less than $1500)
In the federal individual income tax return, you may be able to report interest and dividends directly on Form 1040 rather than listing them individually on Schedule B if the total of each is under $1,500.
Form 1099-R and Form RRB-1099-R (IRA/Pension Distributions)
For additional information see Form 1099-R Rollovers, Penalties, and Exclusions below.
Amortization
Amortization is a method of deducting certain capital costs over a fixed period of time, similar to straight-line depreciation.
Form 1099-R - Rollover of a Retirement Plan or IRA Distribution
A distribution a taxpayer receives from a retirement plan or IRA can be rolled over into another retirement plan or IRA within 60 days of the date of distribution.
Form 1099-R - Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Also, reported on Form 1099-R are certain death benefit payments made by employers that are not made as part of a pension, profit-sharing, or retirement plan, and disability payments made from a retirement plan.
Form 4797 - Sale of Business Property
After entering the above information, you will be asked what form part to carry the transaction to.
Form 1099-INT - Interest Income
Form 1099-INT is used to report interest paid in the course of a trade or business.